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SERAP Sues 36 Governors, Wike Over Trillion-Dollar Loans

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The Socio-Economic Rights and Accountability Project (SERAP) has taken legal action against the governors of the 36 states of Nigeria and the Minister of the Federal Capital Territory, Nyesom Wike, for allegedly failing to disclose and publish the details of loans totaling N5.9 trillion and $4.6 billion obtained by their respective states and the FCT.

The lawsuit, filed under suit number FHC/ABJ/CS/592/2024, was lodged on Friday at the Federal High Court in Abuja by SERAP’s legal team consisting of Kolawole Oluwadare, Kehinde Oyewumi, and Valentina Adegoke.

In a statement released on Sunday, SERAP urged the court to compel the governors and Mr. Wike to provide an account of the loans and publish the loan agreements, as well as the locations of projects financed by the loans.

The lawsuit follows SERAP’s previous demand, outlined in a statement issued by the organization’s Deputy Director, Kolawole Oluwadare, on March 31, 2024, which was directed to the 37 respondents.

Kaduna State Governor, Uba Sani, expressed concern over the substantial debt inherited from his predecessor, Nasir El-Rufai, on May 29, 2023, stating that the state is now struggling to meet financial obligations such as salary payments.

Sani disclosed that his administration inherited a total of $587 million, N85 billion, and 115 contract liabilities from the previous governor.

In its latest statement, SERAP called upon the court to compel the governors and Mr. Wike to involve the Economic and Financial Crimes Commission and the Independent Corrupt Practices and Other Related Offences Commission in investigating the expenditure of all loans acquired by their respective states and the FCT.

In the suit, SERAP is arguing that “it is in the public interest to grant the reliefs sought. Nigerians have the right to see and scrutinise the loan agreements and know the details of how the domestic and external loans obtained by the governors and FCT minister are spent.

“Opacity in the spending of the loans obtained by the governors and Mr. Wike would continue to have negative impacts on the fundamental interests of the citizens.”

The statement highlighted concerns that numerous states, including the FCT, allegedly utilize public funds, potentially including loans, to finance unnecessary travel, purchase luxury vehicles, and support extravagant lifestyles of politicians.

It further asserted that there are purported mismanagement issues regarding public funds, including both domestic and external loans obtained from various institutions and agencies.

SERAP stressed the necessity of transparency in loan spending, emphasizing its significance in enhancing accountability, curbing corruption, and fostering trust in democratic institutions, ultimately aiming to bolster the rule of law.

The statement also emphasized that state governors and the FCT minister cannot use the excuse that the Freedom of Information Act does not apply to their jurisdictions.

It asserted that legal obligations to disclose the requested information are imposed by both the Nigerian Constitution and the African Charter on Human and Peoples’ Rights.

Although no hearing date has been set for the suit, SERAP lamented that the country’s high poverty rate, underdevelopment, and lack of access to public goods and services are attributed to years of alleged corruption and mismanagement of public funds, including loans obtained by states and the FCT.

SERAP cited the Debt Management Office, stating that the combined public domestic debt of Nigeria’s 36 states and the Federal Capital Territory amounts to N5.9 trillion, while the total public external debt stands at $4.6 billion.

However, SERAP expressed concerns that both domestic and external loans obtained by states and the FCT are susceptible to corruption and mismanagement.

As a result, the respondents are urged to prioritize transparency and accountability in the utilization of these loans to mitigate the risk of corruption and mismanagement.

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Nigeria’s Debt Service Ratio Falls To 65% As Tinubu Tackles Economic Woes

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In an effort to reduce Nigeria’s debt burden and stabilize the economy, President Bola Tinubu announced on Monday that the country’s debt service-to-revenue ratio has fallen from 97 to 65 percent over the 17 months since he took office.

Speaking at the swearing-in ceremony for seven new ministers at the State House, Abuja, Tinubu emphasized the government’s progress in stabilizing the economy despite challenging conditions.

READ MORE: Ibadan Man On Why He Used 76 Women For Ritual, Ate Others

“For us, it was a challenge when the nation was servicing its debt with 97 percent of its revenue. It was nothing but the edge of the cliff,” Tinubu said.

“But today, I can report to you that we have brought that down to 65 percent, and we have never defaulted in meeting all obligations, both foreign and domestic.”

His remarks follow Afreximbank’s recent projection that Nigeria’s debt service-to-revenue ratio could reach 110.4 percent by 2024.

Afreximbank’s 2024 Nigeria Country Brief warned of a troubling upward trend in debt servicing, which could see the ratio surge from 33.8 percent in 2017 to a projected 110.4 percent next year.

However, with continued reforms, the report suggested the ratio might decline to 62.6 percent by 2025.

In the first nine months of 2023, debt servicing consumed 66.9 percent (₦5.79 trillion) of Nigeria’s total revenue, a slight improvement from 99.3 percent (₦4.23 trillion) during the same period in 2022.

Tinubu, while optimistic about economic recovery, acknowledged the ongoing struggles faced by Nigerians due to a sharp increase in the cost of living triggered by recent economic reforms.

“We have taken the bull by the horns,” the President asserted. “We have stopped the scavengers. We will fully put an end to the profiteers and smugglers of our resources across the country. We are not shirking our responsibility; we are confronting it head-on.”

He further expressed confidence that Nigeria was on a “good path” toward recovery, emphasizing that the government remains committed to re-engineering the economy.

He cited the introduction of a new minimum wage as one measure aimed at mitigating rising living costs.

Monday’s ceremony also saw the swearing-in of seven new ministers, part of a recent cabinet reshuffle.

In two batches, ministers including Idi Maiha (Livestock Development) and Dr Jumoke Oduwole (Industry, Trade, and Investment) took their oaths.

The reshuffle, which saw 10 ministers reassigned, five discharged, and seven new appointments confirmed by the Senate, reflects Tinubu’s stated commitment to reshaping his cabinet to meet Nigeria’s evolving challenges.

As the administration continues to implement reforms, President Tinubu emphasized a long-term vision for economic sustainability, not only for the current generation but also for future ones.

“Despite the challenges, we must undertake the job of re-engineering and retooling this country’s economic path,” he said.

 

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Edo Deputy Gov, Omobayo Ordered To Court Over Refusal To Vacate Office

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A Federal High Court in Abuja has mandated that Godwins Omobayo, the Deputy Governor of Edo State, appear in person on November 26, 2024, following allegations of contempt of court stemming from his failure to comply with a previous ruling.

Justice James Omotosho issued the order on Monday, asserting that Omobayo, described as the alleged contemnor, must be afforded a fair hearing in accordance with Section 36 of the 1999 Constitution (as amended).

READ MORE: Bobrisky Flees Nigeria Amid Legal Turmoil

The court action was initiated by Philip Shaibu, who was reinstated as Deputy Governor after the court invalidated his impeachment by the Edo State House of Assembly on July 17.

Justice Omotosho ruled that the impeachment proceedings lacked due process and that the grounds for Shaibu’s removal did not constitute gross misconduct.

Shaibu’s suit targets several parties, including the Inspector-General of Police and the Edo State House of Assembly, seeking enforcement of the court’s judgment and demanding that Omobayo vacate the deputy governorship position.

Omobayo assumed office on April 8, following Shaibu’s impeachment.

During the court proceedings, it was revealed that Omobayo was served legal documents but failed to appear.

In response, Shaibu’s attorney, Ayotunde Ogunleye, SAN, urged the court to compel Omobayo’s attendance, citing the need to uphold judicial authority.

In delivering his ruling, Justice Omotosho adjourned the case until November 26 for further proceedings.

He directed that hearing notices be served to the 1st, 2nd, 3rd, and 5th defendants involved in the charge.

“In the interest of justice and to provide the alleged contemnor with an opportunity to defend himself and receive a fair hearing, in accordance with Section 36 of the 1999 Constitution (as amended), I hereby order that the alleged contemnor appear in court in person on November 26, 2024,” the judge stated.

It is noteworthy that the current tenure of the state government is set to conclude on November 12.

 

 

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Presidency Fires Back At Atiku

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On the heels of the salvo fired by the presidential candidate of the Peoples Democratic Party (PDP) in Nigeria’s 2023 elections, Atiku Abubakar, signalling what might be a long-drawn hot exchange of words, the Presidency has made what it called ‘our initial response to Alhaji Atiku Abubakar’.

This was contained in a statement put out on micro-blogging site, X, Sunday by the Special Adviser to the President (Information and Strategy), Bayo Onanuga.

The former vice president had detailed the shortcomings of the President Bola Ahmed Tinubu administration, making efforts to detail what he would have done differently, that would have better results for Nigeria.

In a swift response, the Presidency countered that Atiku and his ideas “were rejected by Nigerians in the 2023 poll”, based on his antecedents.

The statement reads, “OUR INITIAL RESPONSE TO ALHAJI ATIKU ABUBAKAR

“We have just read a statement credited to former vice president Alhaji Atiku Abubakar, in which he tried to discredit  President Bola Tinubu’s economic reform programmes while pushing his untested agenda as a better alternative.

“First, Alhaji Atiku’s ideas, which lacked details,  were rejected by Nigerians in the 2023 poll.

“If he had won the election, we believe he would have plunged Nigeria into a worse situation or run a regime of cronyism.

“Abubakar lost the election partly because he vowed to sell the NNPC and other assets to his friends.  Nigerians have not forgotten this, nor would they be comforted by Atiku’s antecedents when he ran the economy in the first term of President Olusegun Obasanjo’s government between 1999 and 2003.

“As vice president, Atiku supervised a questionable privatisation programme. He and his boss demonstrated a lack of faith in our educational system, and both went to establish their universities while they allowed ours to flounder.

“Talk is cheap. It is easy to pontificate and deride a rival’s programmes even when there are irrefutable indices that the economic reforms yield positives despite the temporary difficulties.

“Despite the futile attempt to hoodwink Nigerians again in his statement, it is gratifying that the former Vice President could not repudiate the economic reforms pursued by the Tinubu administration because they are the right things to do.

“His advocacy for a gradualist approach only showed that he was not in tune with the enormity of problems inherited by President Tinubu.

“It is so easy to paint a flowery to-do list. It is expected of an election loser.

“President Tinubu met a country facing several grave challenges. Fuel subsidies were siphoning away enormous resources we could ill afford, and there was criminal arbitrage in the forex market.

“No leader worth his name will allow these two economic disorders to persist without moving to end them surgically.

“While advocating for gradual reforms may sound appealing, Tinubu took measures that should have been taken decades ago by Alhaji Abubakar and his boss when they had the opportunity.

“Alhaji Abubakar calls for empathy and a human face to reforms. We have no problem with this as it resonates well with our administration’s focus. President Tinubu has consistently emphasised the need for compassion and protection of the most vulnerable.

“The administration has prioritised social safety nets and targeted support for those affected by recent economic transitions.”

 

 

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